9. Debt

Long-term debt at December 31 consisted of:


	2011		2010
(dollars in millions)
4.40% notes due 2021	$	496.8	$	496.4
2.875% notes due 2016		262.1		250.7
6.70% notes due 2026		149.8		149.8

	$	908.7	$	896.9

On December 20, 2010, the company issued $750 million senior unsecured notes consisting of $250 million aggregate principal amount of 2.875% notes due 2016 and $500 million aggregate principal amount of 4.40% notes due 2021. Interest on the notes is payable semi-annually. The notes are redeemable in whole or in part at any time, at the company's option at specified redemption prices or, at the holder's option, upon a change of control triggering event, as defined in the applicable indenture. Net proceeds from this offering were $740.0 million, after deducting debt offering costs, consisting of underwriting commissions and offering expenses of $6.3 million, which were capitalized and recorded to other assets, and a debt issuance discount of $3.7 million, which was recorded to long-term debt. The debt offering costs have been allocated proportionately to each tranche of the notes and will be amortized over their respective terms. The debt issuance discount will be amortized over the terms of the respective notes. Net proceeds from the issuance of the notes were used to fund an accelerated share repurchase ("ASR") transaction.

In connection with the offering of the notes, on December 15, 2010, the company entered into an ASR agreement with a bank counterparty to repurchase $750 million of the company's outstanding common stock. The company received 8.1 million shares upon initial settlement under the ASR transaction. The initial settlement was subject to an adjustment related to a forward purchase contract based on the volume-weighted average share price of the company's common stock during a predetermined period less a discount. The initial payment to the bank counterparty was recorded as a decrease to shareholder's investment, consisting of decreases of $2.0 million in common stock, $10.2 million in capital in excess of par value, and $737.8 million in retained earnings. On September 9, 2011, the company remitted a cash payment of $58.9 million to the bank counterparty upon final settlement under the ASR transaction. The payment to the bank counterparty was recorded as a decrease to shareholders' investment, consisting of a decrease of $69.1 million in retained earnings and an increase of $10.2 million in capital in excess of par value.

In October 2011, the company entered into a new $600 million five-year committed syndicated bank credit facility that expires in October 2016. The new credit facility replaced the company's previous $400 million five-year credit facility that was scheduled to mature in June 2012. The new credit facility supports the company's commercial paper program and can be used for general corporate purposes. The new facility includes pricing based on the company's long-term credit rating and includes a financial covenant that limits the amount of total debt to total capitalization. There were commercial paper borrowings of $304.5 million and $80.5 million at December 31, 2011 and 2010, respectively. The weighted-average effective interest rate on commercial paper borrowings outstanding was 0.3% and 0.4% as of December 31, 2011 and 2010, respectively.